Air Strikes on ISIS Prompt Call to Renew TRIA

While President Barack Obama has declared the Islamic State of Iraq and Syria a "severe threat" to the United States and has begun airstrikes on ISIS targets in Syria, the Insurance Information Institute has issued a report calling for a quick renewal of the Terrorism Risk Insurance Act in response...

October 2, 2014

While President Barack Obama has declared the Islamic State of Iraq and Syria (ISIS) a "severe threat" to the United States and has begun airstrikes on ISIS targets in Syria, the Insurance Information Institute (I.I.I.) has issued a report calling for a quick renewal of the Terrorism Risk Insurance Act (TRIA) in response.

"The private sector does not have the capacity to provide insurance or reinsurance for terror risk to the extent currently provided by TRIA," said I.I.I. President and economist Dr. Robert Hartwig. "Coverage for terrorist-caused economic damages would likely be more costly, or limited in scope, if the federal government played no role in this market." Hartwig said the threats underline the need for swift reauthorization of TRIA, currently set to expire at the end of the year, adding that in the face of increasing threats from ISIS, the need for reauthorization of the program is "particularly dire."

Congress came back from recess on September 8 and stayed in session for only two weeks before again leaving town to campaign for reelection in advance of the midterm elections set for November 4. So far, there has been no agreement on TRIA renewal. The Senate has passed a renewal bill, the House has not.